Proposed new rules for fund manager remuneration

Earlier this year, the European Securities and Markets Authority (ESMA) published guidelines on the remuneration policies that managers of alternative investment funds (AIFMs) should implement to comply with the requirements of the Alternative Investment Fund Managers Directive (AIFMD). The guidelines introduce new standards for alternative investment managers, some of whom are not currently subject to any remuneration requirements.

BIPRU firms, including most hedge and debt fund managers, are in fact already subject to remuneration requirements set out in the Capital Requirements Directive (CRD) and the Financial Conduct Authority’s (FCA’s) Remuneration Code. AIFMD and ESMA’s AIFM remuneration guidelines are based on, but not identical to, the CRD provisions.

On 6 September, the FCA published its quarterly consultation paper, including proposed supplemental guidance (some of which will sit within the Systems and Controls Sourcebook and some of which will sit outside the handbook) to help firms interpret the ESMA guidelines. The proposed guidance deviates from the existing CRD/BIPRU Remuneration Code in two important aspects: it suggests hard financial thresholds for the application of proportionality to AIFM’s remuneration structures; and it deals specifically with remuneration through limited liability partnerships…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

 

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 241.20
No. of lawyers: 860 (UK 200)
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs